29th Mar 2006 10:42
Brainspark PLC29 March 2006 For immediate release 29 March 2006 BRAINSPARK PLC ("Brainspark" or the Company") Update on Investments Brainspark announces that it has agreed to invest $100,000 (£57,000) inPolarizonics Corp. ("PL") a Delaware corporation. Dr. Oron Zachar, founder of PL, has developed a method of potentially increasingthe data storage capacity and read rate of both red and blue laser DVDs by up tothree times, and which is described as Polar High-definition DVD (PH-DVD)Technology. This technology exploits the polarization element contained in allcurrent DVD formats not being used for the physical encoding of the informationon the disc to significantly increase both the speed and capacity of DVDs.Applications have been made for patents in respect of this technology. Brainspark will invest $100,000 (£57,000) in Series B preferred PolarizonicsStock representing a holding of 22,941 shares or approximately 1.96% of theenlarged issued share capital of the company. The price is based on apre-investment valuation of $5,000,000 (£2,850,000) or $4.359 (£2.485) pershare. This investment is part of a funding round raising $250,000 (£142,000)for PL in total, with $695,000 (£396,000) having already been raised withprivate US investors. Brainspark has been awarded a transferable option for an additional sum of$50,000 (£28,500) which expires on 15th July 2006, under the same terms of thecurrent Series B Preferred Shares. Francesco Gardin, Brainspark chairman commented: "This is Brainspark's first newportfolio company investment since 2003. It is an early stage investment in veryhigh-risk technology and is in line with the declared strategy of the venturecapital side of our business. This investment, made in conjunction with a numberof sophisticated US private investors, is an indication of the new network ofrelationships established by the Brainspark Board which is central to ourstrategy of both identifying selected investment opportunities globally andraising the necessary seed capital." Mr Gardin adds: "We believe that Polarizonics Technology, developed by leadingscientists, could have a significant impact on the development of highdefinition DVDs. Nevertheless, the Board is aware that this is a high-riskinvestment given the highly competitive nature of this market." Contact: Francesco Gardin, Brainspark PLC on 00 39 335 296573 Roland Cornish, Beaumont Cornish Limited on 020 7628 3396. Background on Polarizonics Corp. Polarizonics Technology (PT) simply introduces optical modulation and detectionmechanisms to employ the polarization characteristics which, although arepresent, are currently unused in physical disc formats. Importantly PolarizonicsTechnology requires no change in the disc structure itself, and present massreplication equipment can be used without modification or additional costs.Hence, PT can be brought to market within a very short time scale. The PH-DVD format can applied as a modification to increase the data read rateand capacity of any of the competing blue laser formats (such as Sony Blu-Rayand Toshiba HD-DVD). Moreover, the Polarizonics Technology may provide for ared-laser capability to support HD content. Thus, with the potential for over100GB discs, this innovation is of particular importance for satisfying thecoming demands of increased disc capacity of HD video content of movies andvideo games. The PH-DVD format also introduces a new hardware level suppressionof the possibility of unlicensed replication piracy. The Polarizonics Technology R&D effort is supported by an expert engineeringteam. Dr. Zachar, the founder and original inventor of the Polarizonics opticaldisc memory technology, received his Ph.D in theoretical physics at UCLA. Prof. David Ezra (Reading University) is a co-founder of the Company. Prof. Ezrawas a founder member of Sharp Corporation's European Technology Centre inOxford. In 2000 he was the Director of Strategic Research of Sharp's EuropeanTechnology Centre. Prof. Ezra is currently a Visiting Professor at theDepartment of Physics of Reading University, and remains a Senior CorporateAdvisor of Sharp, reporting directly to the Board. Prof. Masud Mansuripur (University of Arizona), a board member, is supervisingthe laboratory testing system design. Prof. Mansuripur is Chair of Optical DataStorage, Professor of Optical Sciences University of Arizona Optical SciencesCenter, and is a leading scientist in the field of optical data storage. Prof. Steven McLaughlin is responsible for developing optimal encodingalgorithms, determine the maximum achievable information density, and explorepossible novel copy protection mechanisms for the PL format. Prof. McLaughlin isdirector of research at Georgia Tech institute of telecommunications. Hepresently serves as president of the international IEEE Information TheorySociety. He is the author of 23 patents in the field. Prof. Hong-Wen Jiang (UCLA) is mainly responsible for the development and supplyof test samples designed according to the PL specifications. Prof. Jiang was aPostdoctoral Fellow at Princeton University from 1989-91, where he worked withthe Nobel laureates Profs. Dan Tsui and Horst Stormer. He joined the Departmentof Physics at UCLA in 1991. Jiang was a Sloan Fellow (1992-94), recipient of the1993 McMillan Award for outstanding contributions in condensed matter physics,and the 1996 Overseas Chinese Physics Association Outstanding Young ResearcherAward. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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